Two Types Forex Trading analysis

Welcome I hope you enjoyed our previous topics namely why Forex Trading, Forex Trading Definition, Types of Forex Order Types and How to Choose a Good Online Forex Trading Broker.

In this hub we are going to discuss the two forex trading analysis that will help you make money, without market analysis as a forex trader you will fail to make money and at worst you will lose your had earned penny in seconds

There are two ways to analysis the Forex Market namely

  • Fundamental Analysis
  • Technical Analysis

As a forex trader you need to equip yourself with both the Fundamental and Technical Analysis, with the two knowledge combined you are at a better position to detect market prices as early as they occur and as early as they come to an end.

Fundamental Analysis

This is a broad way of look at the market based on factors affecting our economy. Such factors include social and political factors of a particular country. When using fundamental analysis you are looking at these factors and based on your observation and information available, you are able to tell if the EUR currency is going to be weak or strong, if there is political stability in any country whose currency is being traded on the forex market, then our fundamental analysis is that this particular currency price will fall, if your economy is doing well then the stronger your currency will be and these are the best currency pairs to trade on

Technical Analysis

Technical Analysis is the most and widely used form of forex market analysis. In simple terms technical analysis is the observation of price movement, with technical analysis you are able to check where the currency price were the previous day and with this knowledge you are able to tell where the price would go next. Technical analysis involves trend observation; you will spend most of the time observing and analyzing price movements through trends. Technical analysis involves chart and indicators observation. In our next Hubs we are going to have a look at Technical Analysis Indicators. But as a trader these are the two types of Forex Analysis you need to learn

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Philipo profile image

Philipo 7 years ago from Nigeria

Thanks for sharing. I have always wanted to learn forex trading.

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